Sears Files Lawsuit Against Key Product Supplier
Sears is preparing to file a lawsuit to stop one of its top product suppliers, One World Technologies, from restricting its supply of Craftsman power tools. One World recently threatened to back out of its contract with Sears, citing concerns about the retailer's ability to pay for merchandise, unless Sears agreed to cut back its orders. Sears Chairman and CEO Edward Lampert wrote in a blog post on the company website that it expects One World to counter with a lawsuit of its own. "We're generally not a litigious company, but we'll fight back to protect our legal rights, hold One World to its contractual agreements, and ensure that our customers aren't affected by this business dispute," Lampert wrote.
Total Retail's Take: Sears used to be known for its abundance of products, however, in more recent years the retailer is most known for its appliances and power tools. This pending lawsuit with One World could be a major step back for the company, as it impacts one of its few remaining core product categories. Lampert went on to explain that vendors such as One World were trying to "embarrass" and "take unfair advantage" of the retailer, which is why Sears has decided to fight back.